Short-Term Rental Battle About to Return to Center Stage

Nearly five months to the day from their first vote in opposition to attempts by state government to take away local control of the regulation of short-term rental properties, St. Joseph City Commissioners will be forced to revisit the issue Monday night thanks to renewed efforts in the Michigan Legislature to take that control away.

The City of St. Joseph has battled over short term rentals for a number of years now, always trying to find the right balance between visitors and residents trying to live in the same neighborhoods compatibly. Now, they are poised to once again dig their heels into the sand based on intelligence from Lansing that two bills that were referred to committee back in the spring could come under discussion, debate and potential advancement as early as Tuesday of the coming week.

St. Joseph City Manager John Hodgson is reminding commissioners that Senate Bill 329 and House Bill 4503 would essentially deprive local governments of the ability to regulate short-term rentals by requiring that such rentals be a “permitted used in all residential zones, not subject to a special use or conditional use permit or procedure different from those required for other dwellings in the same zone.” The bills would allow regulation “applied on a consistent basis to rental and owner-occupied residences for noise, advertising, traffic, or other conditions.”

Hodgson warns that if approved as proposed, “The bills would supersede the city’s current zoning regulations, which do not prohibit new short-term rentals, but restrict them to locations in the R3 Multiple-Family Residence and W – Water Recreation zoning districts, and generally undermine local control.” Hodgson contends that, “The bills would simply allow any home in any residential district, in any municipality, to be rented as a short-term rental, regardless of the wishes of local residents as expressed through their individual zoning processes.”

The bills currently under consideration were formally opposed by the City of St. Joseph in a resolution passed on May 8, 2017 and they are additionally opposed by a number of organizations including the following:

  • Michigan Association of Convention & Visitors Bureaus
  • Michigan Lodging & Tourism Association
  • Michigan Townships Association
  • Michigan Municipal League
  • Michigan Historic Preservation Network
  • Michigan Bed & Breakfast Association
  • Upper Peninsula Travel & Recreation Association
  • Michigan Association of Planning

Hodgson cautions that word in the street is that both bills could begin to advance as early as this week, and the city placed it back on the agenda for Monday night’s meeting at city hall to inform residents of the matter and encourage them to become informed on the matter, form their own conclusions and consider reaching out to elected representatives to express thoughts and concerns regarding short-term rentals.

The House Tourism & Outdoor Recreation Committee has the issue before them in HB 4503, while the Senate Local Government Committee is tracking SB 329. None of the SW Michigan legislative contingent serves directly on the house committee, however Senator John Proos of St. Joseph is Vice Chair of the Senate Local Government Committee.

Here are some of the direct concerns voiced by the Michigan Municipal League in their solid opposition to the proposed rule changes:

  • This legislation prohibits local zoning of short-term rental properties, thus forbidding local
    governments to regulate such properties to protect the health and welfare of residents, visitors
    and businesses. Why would a short-term rental use be treated different than any other land use
    that a local government determines where it’s best to go? Communities should have the ability
    to balance various land uses in the appropriate places throughout their community.
  • This legislation is a statewide concern and not just an issue for communities with high tourism. It
    undermines local decision-making and removes the voice of residents rendering local
    governments powerless to act upon public input.
  • This legislation would consider a dwelling purchased for the sole purpose of renting to short-term
    renters a permitted residential use instead of a commercial lodging use, creating an unfair
    advantage over the traditional lodging industry. There would also be no opportunity for any
    health or safety oversight.
  • This legislation would allow any landlord to simply adjust the terms of a lease agreement to be a
    reoccurring 28-day lease to qualify as a short-term rental and not adhere to a municipality’s
    existing non-owner occupied rental requirements since a short-term rental cannot be subject to
    any procedure different from those required for other dwellings (i.e. owner occupied) in the
    same zone. Non-owner occupied regulations exist to protect the health, safety and welfare of
    tenants in those rental dwellings.
  • Short-term rentals are causing problems in many communities around the state by creating
    commercial activity in residential areas. Residential zoning exists to preserve the character of
    neighborhoods and protect property values for every home. This legislation preempts that
    process and silences the voices of residents.
  • Concentrations of short-term rentals can negatively impact quality of life in a neighborhood by
    eroding the social and physical fabric of what makes that neighborhood a great place to live. An
    over saturation of short-term rentals also can reduce the availability of affordable housing stock,
    contribute to escalating housing prices/rent, and contribute to declining school enrollment. The
    ability to regulate the proper saturation and nuisance potential is a critical part of zoning that
    this legislation prevents.
  • This legislation pits year-round residents against second homeowners and non-resident
    investors.

Stay tuned…or make plans to share your thoughts with the St. Joseph City Commission tomorrow night, Monday, October 9, 2017 at St. Joseph City Hall beginning at 6pm.

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